Spending by wage-earner households fell 6 percent in July in real terms from a year earlier for the largest monthly contraction in nine years and reversing the previous month's 0.4 percent increase, the government said Friday.
Average monthly household spending came to 326,772 yen, the Public Management, Home Affairs, Posts and Telecommunications Ministry said in a preliminary report.
Their average monthly income, including summer bonuses, dropped 1.1 percent in real terms to 575,142 yen, falling for the 16th consecutive month. Disposable income declined a real 1.7 percent to 479,433 yen.